Indie Semiconductor’s Earnings Call: Mixed Sentiment Amid Growth

Indie Semiconductor, Inc. ((INDI)) has held its Q3 earnings call. Read on for the main highlights of the call.

Indie Semiconductor, Inc. recently held its earnings call, revealing a mixed sentiment among investors and analysts. The company reported steady revenue and backlog growth, alongside significant advancements in radar and vision technology. However, challenges such as short-term supply chain disruptions and gross margin pressures were also highlighted, balancing the positive long-term outlook with immediate operational hurdles.

Revenue and Strategic Backlog Growth

Indie Semiconductor reported a total revenue of $53.7 million for Q3 2025, aligning with expectations. The strategic backlog saw an increase from $7.1 billion last year to $7.4 billion, indicating strong future potential and investor confidence in the company’s growth trajectory.

Expansion into New Markets

The company has made strides into new markets, including quantum computing, communications, and humanoid robotics. This expansion is supported by relevant product offerings, particularly in vision processors, positioning Indie Semiconductor as a versatile player in emerging technology sectors.

Tier 1 Radar Partner Milestone

A significant milestone was achieved with the launch of the next-generation Gen8 radar solution by a Tier 1 radar partner. This new radar offers a 30% performance improvement over its predecessor, marking a key advancement in Indie’s radar technology capabilities.

Vision and Photonics Progress

Indie Semiconductor secured design wins for image signal processing with a leading North American Robotaxi OEM and multiple new wins in China. Progress in photonics includes a design win for LiDAR and drone segments, showcasing the company’s growing influence in advanced imaging technologies.

Short-Term Supply Shortages

The company faces supply shortages in packaged substrates, expected to impact Q4 revenue by approximately $5 million. However, resolution of these shortages is anticipated in Q1 2026, suggesting a temporary setback in revenue growth.

Gross Margin Pressure

Indie Semiconductor expects a decrease in Q4 non-GAAP gross margin to 47%, attributed to an unfavorable product mix and pressure on the Wuxi business. This presents a challenge in maintaining profitability in the near term.

Cash Reduction

The company’s total cash decreased by $31.7 million from the previous quarter, partly due to a $17.7 million payment related to an M&A transaction. This cash reduction highlights the financial impact of strategic investments and acquisitions.

OpEx Investment Due to Supply Chain Needs

Additional OpEx investment is required to qualify products in fabs and test houses outside of Taiwan and China. This investment is necessary to address supply chain needs but is expected to impact near-term financials.

Forward-Looking Guidance

For Q4, Indie Semiconductor anticipates revenue between $54 million to $60 million, despite a $5 million shortfall due to supply issues. The company expects a non-GAAP gross margin of around 47% and a decrease in non-GAAP operating expenses to $36.5 million. The net loss per share is estimated at $0.07 on 220 million shares. Looking ahead, significant contributions from radar and vision programs are expected in 2026, indicating a positive long-term outlook.

In summary, Indie Semiconductor’s earnings call presented a balanced view of its current position. While the company faces immediate challenges such as supply chain disruptions and margin pressures, its strategic growth in new markets and technological advancements offer promising long-term potential. Investors are likely to watch closely as Indie navigates these hurdles and capitalizes on emerging opportunities.